MortgagesFeb 4 2016

Newcastle becomes latest lender to claim MCD readiness

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Newcastle becomes latest lender to claim MCD readiness

Newcastle Building Society has claimed preparedness for the changes the EU-wide Mortgage Credit Directive will bring to the industry.

The lender said it will adopt the KFI plus customer documentation initially, moving to the new European Standardised Information Sheet prior to the regulatory deadline of 21 March 2019.

It will also display the second annual percentage rate, with only first charge lending to be undertaken.

Steve Carruthers, head of mortgage distribution at NBS, said that the lender has been working for some time to ensure that both people and systems are fully up to speed with the new requirements.

“We’re pleased to be prepared in advance of the deadline date and have developed communication updates for our brokers to bring them up to speed on what the changes means for them.

“We’re confident it will be a smooth transition for both our organisation and the brokers we work with.”

Binding offers’ will be issued at the same point that NBS currently issues conditional offers and it will also offer 10 days right of reflection, which can be waived by the customer or the acting solicitor.

NBS has also confirmed it will accept consumer buy-to-let lending applications before 21 March this year.

Earlier this week, Simplybiz Group’s Consumer Credit Centre launched a helpline to give brokers and introducers clear answers about what they will need to do to meet the requirements of the upcoming MCD.

Mansfield Building Society revealed its approach to the changes, opting to introduce the new KFI plus documentation for new business and mortgage offers during February.

Meanwhile, the Nottingham will be providing a binding mortgage offer with an eight day reflection period for applicants. It will use the KFI plus illustration initially, before moving to an ESIS ahead of the 2019 deadline.

The Nottingham will not be offering foreign currency mortgages under the new requirements, but will be accepting both consumer buy-to-let and investment property loans.